Tyler TechnologiesTYL +0.36%81 Interest Coverage is 93.63 as of Mar. 2026, which is 31% above its 10-year median of 71.61. GuruFocus rates TYL with a GF Score™ of 81/100 and a GF Value™ of $549.93 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 1,705 Software companies, Tyler Technologies ranks better than 64.75% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Tyler Technologies's
Operating Income
for the
three
months ended in Mar. 2026 was $100 Mil. Tyler Technologies's Interest Expense for the
three
months ended in Mar. 2026 was $-1 Mil.
Tyler Technologies's interest coverage for the quarter that ended in Mar. 2026 was 93.63.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Tyler Technologies Inc has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Tyler Technologies's Interest Coverage or its related term are showing as below:
TYL'
s Interest Coverage Range Over the Past 10 Years
Min: 7.55 Med: 71.61 Max: No Debt
Current: 76.49
TYL's Interest Coverage is ranked better than 64.75% of 1705
companies
in the Software industry
Industry Median: 24.67
vs TYL: 76.49
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Tyler Technologies Interest Coverage Related Terms
Tyler Technologies Interest Coverage Historical Data
* Premium members only.
The historical data trend for Tyler Technologies's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
For the Software - Application subindustry, Tyler Technologies's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Tyler Technologies Interest Coverage vs Software Industry
For the Software industry and Technology sector, Tyler Technologies's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Tyler Technologies's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Tyler Technologies (TYL) has a Interest Coverage of 93.63 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Tyler Technologies and its competitors. This is 31% above median its historical median of 71.61. Over the past decade, Tyler Technologies' Interest Coverage has ranged from 7.55 to 10,000.00. According to the industry distribution chart, Tyler Technologies ranks #601 out of 1705 companies in the Software industry, placing it in the top 35.2%.
Is Tyler Technologies' Interest Coverage too high?
Tyler Technologies' current Interest Coverage of 93.63 is 31% above median its 10-year median of 71.61. Over the past 10 years, this metric has ranged from a low of 7.55 to a high of 10,000.00. The Software industry median Interest Coverage is 24.67. Tyler Technologies' value of 93.63 is 279.5% above this industry median. Based on the distribution chart, Tyler Technologies ranks #601 out of 1705 companies in the Software industry, which is above the industry midpoint. Overall, Tyler Technologies has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tyler Technologies' Interest Coverage compare to GWRE and U?
According to the Software industry distribution chart, Tyler Technologies ranks #601 out of 1705 companies for Interest Coverage. This puts Tyler Technologies in the upper half of its industry. The industry median Interest Coverage is 24.67. Tyler Technologies' value of 93.63 is 279.5% above this benchmark. Historically, Tyler Technologies' own Interest Coverage has ranged from 7.55 to 10,000.00 over the past decade. While the company's 10-year median is 71.61 vs. the industry median of 24.67, Tyler Technologies has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Software company?
The median Interest Coverage among Software companies is 24.67, based on 1,705 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tyler Technologies's current Interest Coverage of 93.63 is 279.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Tyler Technologies and its competitors. For the Software industry, the median Interest Coverage is 24.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tyler Technologies's current Interest Coverage is 93.63, which is 31% above median its own 10-year median of 71.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tyler Technologies stock overvalued right now?
Based on GuruFocus' analysis, Tyler Technologies (TYL) is currently considered Significantly Undervalued. The stock's GF Value™ is $549.93, compared to a current price of $287.07 — trading 47.8% below its estimated fair value. The current Interest Coverage is 93.63, which is 31% above median its 10-year median of 71.61 and 279.5% above the Software industry median of 24.67. Tyler Technologies' overall GF Score™ is 81/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Tyler Technologies (TYL), the current Interest Coverage is 93.63 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Tyler Technologies (TYL) Overvalued in 2026?
Based on GuruFocus' analysis, Tyler Technologies stock appears to be undervalued.
The current stock price of $287.07 is trading 47.8% below its estimated GF Value™ of $549.93.
GuruFocus considers Tyler Technologies to be Significantly Undervalued.
Key valuation signals for TYL:
Interest Coverage: 93.63 (31% above median its 10-year median of 71.61)
GF Value™: $549.93 vs. price of $287.07 (47.8% below fair value)
Industry Position: 279.5% above the Software median (#601 of 1705)
No single metric tells the full story. See the TYL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tyler Technologies provides a full suite of software solutions and services that address the needs of cities, counties, schools, courts and other local government entities. The company's three core products are Munis, which is the core ERP system, Odyssey, which is the court management system, or CMS, and payments. The company also provides a variety of add-on modules and offers outsourced property tax assessment services.
81GF Score
Get the complete analysis for TYL
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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